April marked a positive start to the second quarter of 2008, as the Eurekahedge Hedge Fund Index rose 1.5%1on the month. The month saw a marginal increase in the overall assets of the hedge fund industry, as performance-based flows surged up to US$4 billion, but were partly offset by investor redemptions of about US$1.7 billion during the month, owing to net increase in hedge fund assets as at end-April (as suggested by the funds that have reported to date), standing at US$1,650 billion.
The month’s performance-based flows, to some extent, reflect the sharp reversals seen across many asset classes during the month, some of which (such as the upturn in global equities) largely benefited managers across most regions. The table below illustrates the monthly asset flow data for the current year-to-date.
